The "Made for Germany" initiative – German Economic Elite wants to set a clear sign for the Germany location

The "Made for Germany" initiative: A comprehensive view of Germany's largest investment offensive

The decision of the German Economic Elite to set a clear sign of Germany's location could mark a decisive turning point in the country's economic history. In this report, a neutral person will shed light on the most important questions and answers to this historical initiative.

What is behind the "Made for Germany" initiative?

The “Made for Germany” initiative is a cross -industry alliance of leading German and international companies that want to set a strong signal for Germany as a business location. The initiative was launched by prominent business leaders, including Christian Sewing, CEO of Deutsche Bank, Roland Busch, CEO von Siemens, Mathias Döpfner, CEO of Axel Springer, and Alexander Geiser, CEO of FGS Global.

This company alliance aims to strengthen confidence in the German business location and initiate a positive trend reversal. According to the initiators, the initiative is intended to help "to turn the mood in the country" and "to bring Germany and thus also Europe to growth course".

How many companies participate in the initiative?

A total of 61 companies and investors of the initiative had joined the meeting in the Chancellery on July 21, 2025. Participating companies include both German corporations and international investors. The range ranges from automobile manufacturers such as BMW, Mercedes-Benz and Volkswagen to technology companies such as SAP and Siemens to energy groups such as RWE and armaments such as Rheinmetall.

International participation is shown by the participation of US corporations such as Nvidia and financial investors such as Blackrock, Blackstone, KKR and Advent. This broad line -up underlines the international interest in the German business location.

Which investment amount has been announced?

The dimension of the announced investments is impressive: The companies involved have agreed to invest a total of 631 billion euros in Germany within the next three years. This sum includes various categories of investments.

An important aspect is the composition of these investment commitments. The initiative includes both planned and new capital investments, expenditure for research and development as well as commitments from international investors. According to the initiators, “a three -digit billion -dollar amount and thus a significant proportion of the total” are omitted to new investments.

Is it new or already planned investments?

This question is central to evaluating the initiative. Siemens CEO Roland Busch admitted that it was "fresh, but also promised capital". However, he emphasized that this was not the crucial point: "It can still be evaluated positively if companies confirm capital and commands to the location. We regularly complain that capital is immigrating. We are currently seeing a real trend reversal".

This presentation shows that the initiative both already confirmed and contains new commitments. The organizers argue that the confirmation of existing plans in the current economic situation is an important signal.

What are the criticism of the initiative?

The initiative does not only meet with approval. Critics accuse the organizers that it is primarily a PR campaign. FDP boss Christian Dürr doubted the initiative's substance: "For the required economic turn, there is no short-term PR event with selected corporations that will show the planned investments anyway".

In parts of the economy, the planned meeting ensures amazement. There is talk of a “PR number”, since the billions of billions of colors, which the initiative, are said to be, are not additional investments that have already been planned.

Marcel Fratzscher, President of the German Institute for Economic Research (DIW), advised against additional subsidies for industry and warned of possible blockages in the transformation process. However, he described the summit as a "positive initiative", added: "It is more of a measure of trust formation than that specific solutions were tested".

How do economists evaluate the initiative?

The evaluation by economic experts is mixed. Klaus Wohlrabe from the Munich IFO Institute told ZDF: "I do not want to rule out that it can be a small stone for a positive investment dynamics". It is generally to be welcomed "when managers talk to the chancellor".

IFO President Clemens Fuest sees the announced investments of German companies as a step in the right direction, but warns of too much euphoria and a straw fire. "This is a good push for the economy," he said with a view to state investment incentives and expenditure plans for the economy. The question is whether this is really sustainable: "Is it just a straw fire that is financed with government debt, or are there really more investments?"

Jens Boysen-Hogrefe, deputy head of economic stimulus research at the Kiel Institute for the World Economy (IFW), criticized that only large corporations are represented in the Chancellery. "It is central that the state takes the impulse with it and continues to set off to improve the location quality for investments. And especially especially for companies that are not at the table".

In which economic situation is Germany?

The initiative takes place against the background of a continuing economic weakness. Germany threatens the third year in a row without economic growth. The German Chamber of Commerce and Industry (DIHK) expects a third year of recession for 2025, which has never existed since the Federal Republic was founded.

According to a DIHK survey of 23,000 companies, the gross domestic product in 2025 is expected to shrink by 0.5 percent. "60 percent of companies see their largest business risk in the economic political framework – a negative record," said DIHK general manager Helena Melnikov.

For 2025, the IFO Institute predicts economic growth of only 0.3 percent after the gross domestic product has been slightly shrunk in the two previous years. A recovery is expected to 1.5 percent for 2026.

What structural problems do the German economy burden?

The problems of the German economy go beyond economic fluctuations. Experts identify several structural challenges that put a strain on Germany.

A central problem is the exuberant bureaucracy. Friedrich Merz calls for a fundamental change: "We want to go to a culture of trust in the assumption that citizens as well as companies in Germany are basically right in Germany and perceive a high level of personal responsibility". The CDU plans "clearing" laws that are intended to reduce documentation and reporting requirements, as well as a bureaucracy brake according to the "one-in-two-out" principle.

The shortage of skilled workers is another major challenge. By 2040, 663,000 IT specialists could be missing in Germany. However, a study by the Vodafone Institute shows that by increased digitization, the lack of workers could be reduced by around 1.5 million by 2035.

In addition, high energy prices, the dependence on exports, lack of investments in digitization and education as well as demographic change strain the German economy.

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What does the economy demand from politics?

The initiative formulates clear expectations of politics. Deutsche Bank boss Christian Sewing warned that the federal government had to "accelerate massively" the approval processes so that the announced money would actually be invested. "If it takes years before I get approval for a location, then of course this part of the investment amount will not exist in the period".

Siemens CEO Roland Busch emphasized the need for measures against the shortage of labor: "We need all hands on deck. For example, we have great potential for people who could work but are not yet allowed". In addition, the government must accelerate digitization.

The financial sector calls for clear rules before the investment summit. "The economy ignites the engine – now politics is asked to ensure clear rules and reforms," said general manager Heiner Herkenhoff. "Bureaucratic reduction, digital administration and competitive taxes are central levers to sustainably promote investments and innovations".

What reforms is the federal government plans?

The black and red coalition under Chancellor Friedrich Merz has already announced far-reaching reforms. A central component is the special fund for infrastructure and climate neutrality of 500 billion euros, which has been invested for over twelve years.

This record investment is divided into three pillars: 100 billion euros flow to the states and municipalities, another 100 billion euros are available for investments in the climate and transformation fund, and the federal government can fall back on 300 billion euros for additional investments.

In the case of corporate taxes, the government is planning to reduce corporate tax for companies from 2028. Corporation tax is currently 15 percent of the taxable income, plus solidarity surcharge, which leads to an effective tax rate of 15.825 percent.

Which social reforms are planned?

Chancellor Merz has announced fundamental reforms of social security. The coalition agreed to establish commissions, but Merz emphasized: "This is not only dealt with in a commission. We will get this very specifically on the way of reforms in the second half of 2025 so that our welfare state remains affordable".

In the case of the pension formula, the Union with the SPD has "hard wrestle". This is only laid down for the next six years. "After that there will have to be changes," emphasized Merz. The word "personal responsibility" is in the coalition agreement, and these systems would be converted and made future -proof.

Merz also announced a fundamental reform of the citizens' allowance. A basic security should become of the citizens' allowance. "We are partly dealing with mafia -like structures of social abuse. We will turn it off".

How does abroad react to the initiative?

International attention to the initiative is considerable. Christian Sewing reported that investors from other countries looked very “attentively” on the initiative: “They say: If German companies are ready to invest these sums in their own country, we are also ready to do more”.

This suction effect is already shown in concrete numbers. Sewing referred to the development of euros and US dollars as well as the capital flows that flowed into the European financial markets. "You can see that the suction effect already takes place," he said.

Companies from abroad also show increased interest. "We also see companies that build their works here because they want to diversify. Germany and Europe play an important role in this," said Sewing.

Which specific investment projects are planned?

The companies involved have already announced concrete lighthouse projects. Siemens consistently implemented its investment offensive announced in 2023 over two billion euros, with one billion euros being invested in Germany. In Erlangen, the Siemens Technology Campus for Research on Industrial Metavers is being built, and in Berlin with Siemensstadt Square, a global blueprint for urban development with digital technology is realized.

Deutsche Bank increases its capacities in the area of armor and infrastructure financing, since it sees a great need for financing in the coming years. It also promotes the further development of the market for growth capital as part of the WIN initiative.

Other companies also plan significant investments: Siemens Mobility is expanding its railway plant in Munich and Saarstahl invests billions in the climate -friendly renovation of his work in Saarland.

How should the leverage of private investments work?

A particularly interesting aspect of the initiative is the planned leverage between public and private investments. Christian Sewing explained how the 500 billion euro special fund can be multiplied in infrastructure.

The state could work with the KfW and private investors, for example. "This would go through instruments such as state guarantees, public-private partnerships or other models in which the state takes the first losses in a joint project with private capital".

When asked about specific figures, Sewing replied: "It depends on the design, but it is absolutely realistic to turn the 500 billion with an additional private capital 2000 to 2500 billion euros". This leverage could significantly increase the investment power.

What role does digitization play?

Digitization is a central component for coping with the structural challenges. A study by the Vodafone Institute shows that the shortage of skilled workers could significantly alleviate by increased digitization. By 2035, 1.5 million missing workers could be compensated for by digital solutions.

In the healthcare sector, the use of digital technologies could enable up to 9.9 million medical contacts per year, which otherwise fell victim to the lack of personnel. Artificial intelligence can help recognize patterns and make quick and precise diagnoses.

The federal government plans to invest at least four billion euros from the special fund for digitization annually. The aim is that the authorities will be almost completely digitally possible in the future, including uniform software solutions and AI-based approval procedures.

What about Germany's competitiveness?

Germany's competitiveness has suffered in recent years. Germany was an export world champion and had long benefited from favorable energy from Russia and a strong demand from China, explained business professor Guido Bünstorf. These times are over.

"We have rely on an old prosperity model for too long. At the same time, a lot of bureaucracy and high taxes for companies paralyze the location of Germany," continued Bünstorf. The dependence on Russian gas was a strategic mistake, and the shutdown of nuclear power plants in the middle of the energy crisis exacerbated the situation.

Despite these challenges, Chancellor Merz Germany sees Germany as one of the most attractive investment locations in the world. The "Made for Germany" initiative is intended to send a powerful signal to international companies to invest more in Germany again.

What effects does US trade policy have?

The United States' trade policy under President Donald Trump is an additional challenge. The German export industry, which has already been taken into force on EU imports, significantly burden the German export industry. According to model calculations from the IFO Institute, they dampen the German GDP growth in 2025 by 0.1 and in 2026 by 0.3 percentage points.

The new US tariffs and uncertainty about future US politics dampen economic growth, especially since they hit German industry at a time when it began to stabilize after a long phase of weakness.

At the customs conflict with the USA, Merz continues to hope that Washington will agree until the beginning of July. If not, the EU is "with a number of options". He had the impression that Trump has "an interest in further cooperation" with Europe and "especially with us in Germany" in economic issues.

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How is the initiative checked and tracked?

An important question concerns the tracking of the announced investments. When asked how to prevent the campaign, Christian Sewing replied: "We are not planning to send an auditor through the company every four weeks to keep this".

Instead, the initiators rely on confidence: "We have confidence that the sums called, which have been called, not only stored in the investment plans, but are actually invested". The most important yardstick is at the end of how the location is strengthened together. "We are happy to take stock of what we have achieved next year".

The companies have also named lighthouse projects that they can talk about in public. This should ensure transparency and underline the credibility of the initiative.

What is the importance of the initiative for the labor market?

The German labor market faces significant challenges. There are as many people unemployed as they have not been in ten years. At the same time, many industries suffer from an acute shortage of skilled workers, especially in the IT area, where it takes an average of 159 days for an open position to be filled.

The initiative could create new jobs and secure existing ones. The announced investments in research and development, digitization and infrastructure will create qualified jobs. The further training of the employees is particularly important in order to qualify for new requirements.

The Federal Government is planning a reform of the Working Hours Act, which is intended to enable a weekly instead of a daily maximum working time. "This is not easy for the Social Democrats and the unions," admitted Merz, but emphasized: "The goal is clear: we will do it without a tariff reservation".

How do the unions react?

The unions observe the initiative with mixed feelings. While you basically welcome investments in Germany, you are skeptical about reforms that could be at the expense of employees.

For example, IG Metall evaluated the possible interest of Rheinmetall at the VW plant in Osnabrück as evidence of the future viability of the location, but warned of a premature task of the work. "VW management must carefully consider whether it wants to do without this well-established and highly qualified team."

The unions are reluctant in the planned reform of the Working Hours Act. Merz admitted that the planned changes are "not very easy" to the Social Democrats and unions, but made it clear that the goals should be achieved even without a tariff reservation.

What role do medium -sized companies play?

A criticism of the initiative is that mainly large corporations are involved. Jens Boysen-Hotchrefe from the Kiel Institute for the World Economy criticized: “It is central that the state takes the impulse with it and continues to set off to improve the quality of the location for investments. And especially especially for companies that are not at the table”.

"However, the many small and medium -sized companies that don't be at the table are important for Germany," he added. This criticism refers to the importance of medium -sized businesses for the German economy, which is often referred to as a backbone.

The federal government is aware of this importance and plans measures that also benefit smaller companies. The reduction in bureaucracy, tax relief and improved framework conditions should help all companies, not just the large corporations.

What does international classification look like?

Germany is not alone with its economic challenges, but the situation is particularly serious. While other European countries sometimes have better growth rates, Germany is struggling with structural problems as the largest economy in Europe.

In this context, the "Made for Germany" initiative is also a signal to the European partners. Christian Sewing emphasized: "As an alliance of many leading companies, we want to help with politics to bring Germany and thus also Europe on a growth course".

The initiative is observed internationally. The fact that American companies such as Nvidia and financial investors such as Blackrock also participate shows the global interest in the German market.

Which environmental and climate goals are being followed?

An important aspect of the initiative is to focus on climate neutrality. The special fund is also explicitly intended for "investments to achieve climate neutrality by 2045". 100 billion euros flow directly into the climate and transformation funds.

The planned investments include the expansion of renewable energies, the establishment of reserve power plants, the connection of industrial centers to the hydrogen core network and the enabling of CCS/CCU technologies for difficult to avoid emissions.

Strategically important industries such as the semiconductor industry, battery, hydrogen or pharmaceuticals are to be located in Germany. E-mobility is to be promoted by purchasing incentives in order to obtain the auto industry as a leading industry.

What does the initiative mean for the future?

The "Made for Germany" initiative could actually mark a turning point if the announced investments are realized and the political reforms apply. The combination of private investments and government measures has the potential to tackle the structural problems in Germany.

It will be crucial whether it will be possible to reduce the bureaucratic hurdles, to combat the shortage of skilled workers and to promote digitization. The announced social reforms will show whether Germany can make its welfare state sustainable without endangering competitiveness.

International attention to the initiative shows that Germany is still being attributed as an attractive investment location. The challenge is to justify this trust through concrete deeds and successfully implement the structural reforms.

A historical turning point or PR campaign?

The evaluation of the "Made for Germany" initiative ultimately depends on whether the announced investments are actually made and political reforms are successfully implemented. With 631 billion euros in investment commitments and a special fund of 500 billion euros, these are dimensions that have the potential for a turning point.

The criticism that it is a PR campaign cannot be dismissed, since part of the investments have already been planned. Nevertheless, the initiators argue convincingly that the confirmation of existing plans in the current economic situation is an important signal.

The true assessment of the initiative will only be possible in the coming years if it shows whether the announced investments are realized and Germany's structural problems are successfully tackled. In any case, the basis for a restart is laid – now it depends on the implementation.

The story will show whether July 21, 2025 will go down in history books as the day of the beginning of a new era for Germany or as a further example of large announcements without corresponding acts. However, the signs are quite on change, and the initiative could actually be the catalyst for the urgently needed economic transition.

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